President Trump followed the Fed again on Tuesday and said at a rally in Michigan: “I have a Fed that doesn’t have a really good job.”
This is obviously a reference to Fed Chairman Jerome Powell, although he did not mention Powell's name and said “I want to be very kind and respectful to the Fed.”
He added: “You shouldn't criticize the Fed; you should let him do his own thing, but I have a lot more interest rates than he does, believe me.”
This is the latest sign that the president is not going to relax among the central bank or its chairman, or pushing for lower interest rates a week after saying he “unintentionally” fired the central bank boss.
Trump himself speculated about Powell's fate after asserting on social media earlier this month that “Powell's termination cannot be fast enough.”
He will not try to remove Powell's assurances to keep investors calm, fearing that Trump is ready to subvert the Fed's leadership and challenge its independence directly.
Obviously, this is a step to be considered. White House economic adviser Kevin Hassett said Trump and his team are actually looking at whether it is possible to remove the Federal Reserve Chairman.
In a speech earlier this month, Powell said Trump's attack on Powell has intensified, and the president's offensive tariffs will lead to higher inflation and lower growth, while the Fed may now stabilize interest rates.
Trump appeared to acknowledge in an April 21 social media post that economic growth could slow down, calling for “lowering first-mover rates” and calling Powell a “main loser.”
“Unless it’s too late, a major loser, the economy may slow down and now lower interest rates.”
Given the many uncertainties ahead, many other Fed officials outside Powell also urged patience and caution.
A new reading on inflation and GDP will be released Wednesday morning, which will be carefully examined before the next policy meeting from May 6 to 7.
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